Twenty times the revenue in two years, at fifteen times earnings. On an SME platform that combination usually has a footnote. Here there are three.
The issue
Ravita Engineering Services opens on Tuesday, 13 October 2026 and closes on Thursday, 15 October, on NSE SME, at a price band of ₹105 to ₹112. The lot is 1,200 shares and the minimum retail application is two lots, ₹2,68,800. The issue is ₹116 crore, all fresh, with ₹6 crore reserved for the market maker. Listing is expected on 21 October. Post-issue market cap at ₹112 is ₹422 crore. Vivro Financial is the lead manager.
What the company does
Ravita does turnkey HVAC and electro-mechanical work: chiller plants, central air conditioning, compressors, plus operation and maintenance. It works in three areas: onshore projects, offshore rigs and platforms, and data centres. In FY26, 76% of revenue came from projects and 24% from O&M contracts. Offshore oil and gas was 29% of revenue and data centres 12%. The order book was ₹491 crore at 30 June 2026, about 1.8 times FY26 revenue.
The numbers
| ₹ crore | FY23 | FY24 | FY25 | FY26 | Q1 FY27 |
|---|---|---|---|---|---|
| Revenue from operations | 19 | 13 | 109 | 278 | 97 |
| PAT | 0.1 | 1.5 | 11.8 | 28.0 | 10.1 |
| Operating cash flow | 0.8 | 0.2 | -8.9 | -46.9 | -11.2 |
| Net worth | 1.8 | 3.3 | 15.1 | 99.6 | 109.7 |
| Borrowings | 3.5 | 23.1 | 19.2 | 30.9 |
For years this was a ₹13 to 19 crore company. Then revenue went 8x in FY25 and 2.6x in FY26. PAT margin held near 10%, which looks steady.
The cash flow line does not. From FY25 to June 2026 the company reported ₹50 crore of profit and burned ₹67 crore in operations. The profit is real on paper. It is sitting with clients, not in the bank. ₹70 crore of the IPO money goes to working capital, which tells you where the cash went.
Where the money goes
- ₹70 crore: long-term working capital for FY27 and FY28.
- ₹25.5 crore: heavy equipment (trucks, dumpers, dozers, cranes) to replace leased machinery.
- The rest: general corporate purposes and issue expenses.
No debt is being repaid. Borrowings are modest at ₹31 crore.
Who owns it, and at what price
The current promoters are new. On 22 February 2025, Vibhoar and Rachita Agrawal bought 91,730 shares from the earlier owners, the Goswami family, at ₹691 each, about ₹6.3 crore for control. Adjusted for the later split and the 100:1 bonus, that is ₹3.42 a share. The IPO price is ₹112.
Between June and August 2025 the company raised about ₹56 crore through preferential allotments and a private placement at ₹16,000 per old share, about ₹79 per share today. That money is most of the jump in net worth. Those investors are in at roughly 30% below the IPO price. Sunil Goswami, from the old ownership, stays on as MD and CEO. Promoter holding falls from 73.7% to 53.5% after the issue.
Flags
- Top five clients: 79% of FY26 revenue, 99% in FY24.
- Maharashtra and Indian territorial waters: 66% of revenue in the nine months to December 2025.
- Negative operating cash flow in FY25, FY26 and Q1 FY27, while profits rose.
- The offer document lists untraceable historical records and delayed statutory filings, some over 1,600 days late, as a risk.
- A promoter-group company, M.R. Foods, faces strike-off proceedings.
- Litigation of about ₹3.3 crore, plus indirect tax claims of ₹2.4 crore.
Valuation
At ₹112 the price is about 15x FY26 earnings and 3.1x pre-issue book. The quoted 10x P/E uses the June quarter annualised. Either way it is cheap on paper. Cheap is fair when you cannot yet tell how much of the profit turns into cash.
Subscription and GMP
The grey market premium was ₹10 on 12 October, about 9% over the top of the band. It was ₹0 a few days earlier.
Verdict
The order book is real and the margin is steady. But a business that grew 20x in two years under owners who arrived in 2025, with every rupee of profit and more stuck in receivables, needs two more years of filings before the low P/E means anything. Cheap, with a reason.
Educational purposes only, not investment advice. DYOR.
Sources: Ravita Engineering Services Limited DRHP and RHP, 2026; Chittorgarh, Investorgain and IndiaIPO IPO pages, 12 October 2026; ScanX DRHP summary; Chanakya Nipothi SME IPO review, October 2026.
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